Assume the following information for a given corporate step-up bond: Par = $1000 Maturity = 12 years Current price = $1,122.50 Assigned interest rates: Years 1-8: 4.80% Years 9-12: 5.30% If this bond pays semi-annual coupon payments, what is the current YTM (Yieldto-Maturity or Internal Rate of Return) for this bond? 2

4. Assume the following information for a given municipal step-up bond: Par = $5000 Maturity = 23 years Current price = $4,274.20 Assigned interest rates: Years 1-4: 1.18% Years 5-11: 2.03% Years 12-19: 2.14% Years 20-23: 2.27% If this bond pays annual coupon payments, what is the current YTM (Yield-toMaturity or Internal Rate of Return) for this bond?

Please explain how without using excel. Preferred to use a calculator tvm method but please explain to me how to solve.